O’Melveny’s Wallace, Guo, Shi Co-Author Article on Enforcement of Defaulted Loans and Mortgages in China

March 13, 2014

The article “Enforcement on Defaulted Loans and Mortgage on Real Property under Chinese Law,” which was co-authored by O’Melveny & Myers partners Walker Wallace and Binga Guo along with associate Sylvia Shi, appears in the February/March 2014 issue of Pratt’s Journal of Bankruptcy Law. The piece addresses key distinctions between the enforcement process in China and other jurisdictions that the authors say should fundamentally impact the way an investor appraises a collateral interest in the country. Additionally, the article discusses significant pitfalls that investors should avoid when seeking to enforce a collateral interest in China. “These issues have become increasingly important as the types of investors participating in the Chinese market have become more varied,” the authors write, noting that “[w]hereas foreign investment 20 years ago largely took the form of equity investment in Sino-foreign joint ventures, today there is an increasingly healthy ecosystem of private equity investors, distressed investors, banks, guarantee companies, and leasing companies, to name a few.”

Walker is a member of O’Melveny’s China Practice and resides in the Firm’s Shanghai office, along with Shi who is a member of the Transactions Department. Guo is a member of the International Litigation Practice and resides in the Firm’s Beijing office.